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A Life Insurance Policy is a personal property, like a house, car, antiques, old painting or stocks and bonds. You can sell your life insurance policy like you sell your other personal property items. Life insurance may now be viewed as a traditional asset that can be purchased or sold. Sale of Life insurance policy is called as Life insurance settlement, Life settlement or Senior settlement.

Millions of seniors are unaware of the flexible and liquefiable insurance policy, they can sell for cash. The flexibility of a Senior settlement or Life settlement permits policy owners to sell all or a portion of their life insurance policies.

When the life insurance policy owner sells own life insurance policy, he or she transfers all rights and obligations to a new owner. The purchaser of the policy will then become the new owner and the new beneficiary of the policy and is then responsible for making all of the future premium payments. The new owner now collects the full amount of the death benefit when the insured dies.

Life insurance settlements present a unique opportunity to the policy holder to extract the maximum possible value from an existing life insurance policy and repurpose those funds for whatever financial needs may exist. Many people choose this option because the cash value of a life settlement generally exceeds the surrender value that would have been paid by the life insurance policy.

Policies are sold for many different personal or business reasons. Below are some of possible reasons for considering a Life Insurance Settlement:

Personal:

1. The original purpose or need for the policy has changed or has diminished totally.

2. The Beneficiary of the policy is deceased.

3. Policy holder is chronically ill; selling current policy provides needed funds to cover financial burdens caused by illness. A Viatical settlement gives the ability to regain needed financial security.

4. Policy has not met the original illustrated values and premiums need to be increased to keep policy in force.

5. If policy holder is over the age of sixty-five, a Life settlement or Senior settlement maximizes the current assets by eliminating premiums and getting required funds that can be used today.

6. Insured person wishes to distribute the funds/ liquid assets as per his or her desire while living.

7. To make funds available for other investments like real-estate, stocks, bonds or to start a new business.

8. Divorce settlement has altered the need for life insurance.

9. Personal financial situation has gone bad and making premium payments is unaffordable.

10. Sale proceeds from Life settlements are needed to pay down loans or outstanding debt.

11. The policy owner’s current asset mix is weighed too heavily in life insurance.

12. A client wishes to invest in a more appropriate product, such as a lower cost survivor policy, single premium annuity for supplemental income, long term care insurance, long term care insurance or other asset protection tools.

13. A family trust has eliminated the need for personal life coverage.

14. Policy holder need to fund an alternative healthcare that present insurance does not cover.

15. Insured person has left an employer, so he or she needs to sell old group policy.

16. Policy was purchased to ensure the availability of funds to pay off a mortgage and the mortgage has been paid.

17. To take a long awaited vacation or to buy a luxury item that was never affordable.

18. When a policy is in danger of getting lapsed the policy holder can turn it into cash.

19. You can use life settlements to donate to your favorite charity or cause and feel much better about yourself knowing that you have done your part to make the world a brighter place.

Business:

1. Business owned policies those are performing below expectations.

2. Key person insurance policy is no longer required due to retirement or change in business structure.

3. A policy purchased to finance a buy/ sell agreement is no longer needed after the business has been sold.

4. Bankruptcy of business has caused liquidation of assets.

5. Deferred compensation programs in business have changed or not required.

6. If you are a corporation, selling corporate owned life insurance lets you regain back premiums paid on no longer needed policies.

Estate Planning:

1. A single life insurance policy is no longer appropriate- a survivorship policy meets the estate planning requirement and 1035 exchange is avoided.

2. If you are managing an estate, selling your current life insurance policy will help manage changes in estate size, eliminate premiums, and liquidate policies that are no longer needed.

3. A policy needs to be removed from an estate. The three year rule can be avoided by using the life settlement sales proceeds to repurchase a new policy out side the estate.

4. There is a significant reduction in size of estate due to loss of net worth and less insurance coverage is needed to fund the projected estate tax liability.

Charitable Organizations:

1. If charities can no more continue to pay premiums on gifted policies.

2. Proceeds of a Life insurance settlement could result in a larger gift to the charity organization than the policy itself.

Non-Profit Organizations:

1. If you are a non profit organization, selling a gifted life insurance policy provides funds that can be used now and also eliminates premiums.

Once a policy owner has absolutely determined that it no longer makes sense to continue holding a policy, Life insurance settlement or Life settlement may be economically advantageous relative to surrendering or letting the policy lapsed.

This innovative wealth and estate planning tool removes the burden of expensive insurance premium payments in addition to providing the lump sum cash settlement. This allows policy holders to get cash out of their life insurance policy, in an amount in excess of the cash value of policy(if any), while they are still alive. To get the highest life settlements is to improve the quality of life during your retirement years.

About the Author:

Paul Sherman is a Cash Flow Consultant. He offers free, professional and independent advice to Individuals, Business owners and Seniors. To secure a Life Insurance Settlement or Structured Settlement funding please visit http://www.Financial-ease.com

Article Source: http://EzineArticles.com/?expert=Paul_Sherman

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This article has been bought to you by Jared Roberts… He enjoys writing about mobile phone insurance money saving tips and has recently completed an article on Insurance for iPhones.

Are you thinking about your family’s welfare if you passed away? Or do you think you will be able to live comfortably when your partner died? If you are thinking of the possibility such as this, you might think of considering life insurance as a must have.

Life insurance grants your beneficiaries money when you passed away. Others used these money on paying debts, the funeral costs, the deportee’s child’s tuition for college, or expected expenses.

The main reason of having life insurance is to provide your dependents a source of income when you are gone. Life insurance companies are responsible on replacing your lost revenues.

There is a medical examination requirement when buying a life insurance. It involves urine and blood specimen, blood pressure evaluation, weight and height measurement. An interview regarding your health background is also conducted.

Mainly, there are two types of life insurance policy presently offered to the consumers. These are:

1. Term-Life Insurance – this is a less expensive life insurance policy. This is because the term of making payments for this policy only covers until you are able to make payments. Therefore, if such incident like you accidentally dies within the period you are making payments; your dependents will receive the corresponding benefits according to the duration of your payment.

There are at least four kinds of term-life insurance policy.

a. Convertible-life-term insurance allows you to convert your policy into permanent-life insurance. There is no need for medical exam, but the cost is subjected to increase.

b. Term insurance allows you to apply for a new life insurance policy without requiring you to undergo a medical examination. This is also subjected to a higher premium cost.

c. Level-term-life insurance allows you to pay for the same amount every year for the whole duration of the term. Along with this, you will be receiving equal amount of benefits if you happen to die during the payment period.

d. Decreasing-term-life insurance compensates a death assistance that slowly decreases in merit over time. Payments usually stay the same all through the duration.

2. Permanent-Life Insurance – This involves timely payments which means you are entitled to finish paying for the premium even you are dead already. You family or relative may continue paying for it if in case such event happened. The good thing of buying this type of life insurance is it provides a saving feature which can be utilized even you are still alive. It is said that this is more costly than that of term-life insurance.

There are at least four kinds of permanent-life insurance.

a. Whole-permanent-life insurance allows you to pay a permanent payment for a set death benefit. It also has a saving feature of cash that will provide you a money reserve.

b. Universal-permanent-life insurance allows you to change the amount of your insurance policy. But these changes may require you for a medical examination.

c. Variable-permanent-life insurance is quite risky. This is because your premium is invested on buying stocks, market funds and bonds. If the investment did not turned out well will result to bankruptcy. In the contrary, if it turned out good will provide you a higher money reserve.

d. Variable-universal-permanent-life insurance is a combination of premium and bereavement benefit flexibility of a universal-permanent-life insurance with the savings flexibility and danger of variable-permanent-life insurance.

When buying for a life insurance policy, you have to determine the kind of insurance and the range of your need. You have to take time on learning the basics of the term catered by the life insurance company before making a decision of buying one.

Dave Poon is an accomplished writer who specializes in Insurance. For more information regarding Exam Life Insurance [http://www.bestinsuranceworld.com/exam_life_insurance.php] please drop by at [http://www.bestinsuranceworld.com]

Article Source: http://EzineArticles.com/?expert=Dave_Poon

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